Ol_Rancher
Recycles dryer sheets
- Joined
- Jan 8, 2004
- Messages
- 188
Greetings,
I seek the advice of members here. I am a bit over 58 years old (born '46 , lead boomer).
My portfolio has served me well enough in the past but I feel that Scott Burns' recent column is correct. A real economic crunch is coming in the not to distant future.
As I see it the over 70 million boomers who will be demanding their social security checks in the next couple of decades will force a combination of options from the US government. Decrease benefits by raising age and/or taxing SS payments more; Increasing payroll taxes even more; Printing more money to pay benefits with cheaper dollars.
I will be 59 1/2 in about 14 months and wish to have a more defensive portfolio in place that is appropriate in a rising tax and inflationary enviornment.
Current portfolio:
Qualified (tax deferred) -
Equivest common stock - 55K
Equivest Capital Guardian Research - 44K
Equivest Alliance International - 4K
Taxable -
American Balanced - 26K
American Capital Income builder - 109K
American Europac - 36K
American Wash Mutual Investors - 260K
Enterprise Growth - 79K
Enterprise Small Cap Value 25K
cash - MMA = 200K @ 2.1%
I have a 27K/yr pension (no cola), expect 1000/mo SS at age 62, and have a rental property. At this point the cash flow from these is enough to meet my expenses. (no debt of any kind, frugal living, medical insurance - not cheap)
I fear that in 5 to ten years the looming economic crises and medical needs will force me to use the investments to meet my expenses.
I feel that in within the next two years I should make the changes that will hold up against the tax and inflation pressures.
Some of my investments seem not to be defensive enough. The Equivest and the Enterprise funds do well in a rising stock market which now does not seem to have much upside potential and the cash will erode over time unless invested. So my first changes would be in these three segments of my overall portfolio.
Question: Where to move monies from them?
What investments for rising tax and
inflation over time.
Now, does not seem the time to buy bonds thus the cash position, but in 14 - 18 months that could change.
The market is flat at best and rightly fearful of political risk .. with the olympics, elections, & Iraq, come too many possible negative outcomes, but again in 14 - 18 months perhaps we will have a different picture.
Comments? Suggestions ?
Many thanks to those who respond !
I seek the advice of members here. I am a bit over 58 years old (born '46 , lead boomer).
My portfolio has served me well enough in the past but I feel that Scott Burns' recent column is correct. A real economic crunch is coming in the not to distant future.
As I see it the over 70 million boomers who will be demanding their social security checks in the next couple of decades will force a combination of options from the US government. Decrease benefits by raising age and/or taxing SS payments more; Increasing payroll taxes even more; Printing more money to pay benefits with cheaper dollars.
I will be 59 1/2 in about 14 months and wish to have a more defensive portfolio in place that is appropriate in a rising tax and inflationary enviornment.
Current portfolio:
Qualified (tax deferred) -
Equivest common stock - 55K
Equivest Capital Guardian Research - 44K
Equivest Alliance International - 4K
Taxable -
American Balanced - 26K
American Capital Income builder - 109K
American Europac - 36K
American Wash Mutual Investors - 260K
Enterprise Growth - 79K
Enterprise Small Cap Value 25K
cash - MMA = 200K @ 2.1%
I have a 27K/yr pension (no cola), expect 1000/mo SS at age 62, and have a rental property. At this point the cash flow from these is enough to meet my expenses. (no debt of any kind, frugal living, medical insurance - not cheap)
I fear that in 5 to ten years the looming economic crises and medical needs will force me to use the investments to meet my expenses.
I feel that in within the next two years I should make the changes that will hold up against the tax and inflation pressures.
Some of my investments seem not to be defensive enough. The Equivest and the Enterprise funds do well in a rising stock market which now does not seem to have much upside potential and the cash will erode over time unless invested. So my first changes would be in these three segments of my overall portfolio.
Question: Where to move monies from them?
What investments for rising tax and
inflation over time.
Now, does not seem the time to buy bonds thus the cash position, but in 14 - 18 months that could change.
The market is flat at best and rightly fearful of political risk .. with the olympics, elections, & Iraq, come too many possible negative outcomes, but again in 14 - 18 months perhaps we will have a different picture.
Comments? Suggestions ?
Many thanks to those who respond !